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It's a hot market where I live and I'm not sure if I'm being smart of just desperate!
As any buyer would, I hope to receive seller assistance towards closing costs. I'm interested in a bank owned foreclosure. I'm not sure, with the market how it is, if banks are even considering offers that ask for money towards closing costs. So I was wondering if I could make one offer for a couple of thousand over the asking price without asking for closing assist and another offer for perhaps $8000 over asking price and ask for $4000 back in closing costs. The second offer would net more to the bank even though they'll contribute to closing costs. I wonder if I could even do this and if the bank would go for it. Hmmm...Thanks forum!
Make the offer that works out best for you. If the bank refuses, make them a counter-offer of the one that works out better for them. (Are you concerned that you might be in a 'bidding war'?)
Banks have rules about closing cost assistance. Most will pay some of it. Make your offer with closing cost assistance. If they don't like it they will counter.
Thanks! I'm afraid I'll be rejected outright if I ask for closing cost assistance since it's a seller's market. But keeping costs down is key so I'm going to try. Thanks!
The banks look at the bottom line - price minus closing costs. They don't really care about how it's split other than to make sure it doesn't impede your ability to get a loan. Many lenders cap you out at 3% and there are sometimes appraisal issues if the closing costs are added on top the price of the house.
Thanks! I'm afraid I'll be rejected outright if I ask for closing cost assistance since it's a seller's market. But keeping costs down is key so I'm going to try. Thanks!
...from a technical standpoint there is nothing that prohibits a potential buyer from submitting an offer sheet that has multiple alternatives. I have had some clients that want to do EXACTLY what the OP suggests. I discourage this, as what it does is present the seller with a "carry out menu" of options and the seller will inevitably send back a counter the selects the "price" from "column A " that is most favorable to them and the "terms" from "column B" that are least favorable to the buyer... Which results in the buyer having to find something in the middle that really is better that the original "multiple choice" offer for the seller and not quite as good for the buyer or they just give in...
In the end that will be the same sort "negotiated counter offer" that STILL must be signed by both parties (and make no mistake that signed counter offer is STILL not a contract until the appropriate earnest money / consideration is in escrow -- and truly / technically there can be JUST ONE CONTRACT "to bind them all") so it wastes a lot of time and potentially leads to confusion.
Quote:
Originally Posted by dontaskwhy
Back to the topic of the thread, you can only make 1 offer at a time. The seller can accept, decline or counter offer.
It's a hot market where I live and I'm not sure if I'm being smart of just desperate!
As any buyer would, I hope to receive seller assistance towards closing costs.
Depending on how hot, multiple bids may be common and you may be competing with investors/cash buyers who can close quickly. Some of them are more likely to remove the inspection contingency , too.
Be aware that sellers assists are a relatively recent thing associated with substantially more unsold inventory that the market could reasonably absorb. Last time seller assists were common was back in the early 80's, when interest rates were approaching 20%.
As all others have said, the selling bank cares about the net. You lender has a different ratio for seller assists versus price and the property has to appraise.
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Not really true...
